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VIC TAC up for sale?

Discussion in 'Politics, Laws, Government & Insurance' started by Jeffco, May 1, 2016.

  1. Pallas warns more asset sales 'on the horizon' to pay for major projects

    The Andrews government is planning to privatise more state-owned assets to help pay for billions of dollars' worth of road and rail projects over the next decade – but won't say which ones could be sold off.

    Weeks after legislation to sell the Port of Melbourne finally passed the Victorian Parliament, Treasurer Tim Pallas has confirmed the government is already eyeing off a number of other assets that could be "recycled" in order to help fund Labor's $46 billion infrastructure agenda.

    "There will be more, let me be very clear about that," Mr Pallas declared at a post-budget lunch hosted by the Melbourne Press Club and the Victorian Chamber of Commerce and Industry

    We intend over the course of this year and next year of proving up the viability of certain assets. There are some that are on our horizon that we're looking at, but I don't want to put that in to the public domain at the moment – the reason being there are people who work there and whose livelihoods are affected, and I think I at least owe them the courtesy of speaking to them directly before I start telling the world at large that their particular undertakings will be affected."

    The push to further relinquish state-owned assets was outlined in the Victorian budget papers released on Wednesday, which warned that the state would need new strategies to fund its major projects over the next 10 years.

    However the number of assets that could be flogged off is somewhat limited given many essential services in Victoria – including electricity and public transport – were already privatised under the Kennett government in the 1990s.

    Since then the Port of Melbourne has been regarded as the prime opportunity, with the government now able to use the proceeds to pay for level crossing removals on Melbourne's busiest train lines and other transport projects.

    Two years ago the Rural Finance Corporation was also sold under the Napthine government, which had flirted with the idea of privatising Vicroads' personalised number plates business and land registry services provided by the Land Titles Office. Other remaining state-owned assets include water businesses and the Transport Accident Commission.

    Infrastructure was the centrepiece of Wednesday's state budget with Mr Pallas declaring Victoria was prepared to fully fund the $10.9 billion Melbourne Metro Rail project if the Turnbull government refused to partner in the project. The budget also included:

    • An increase in the debt levels, from 4.8 per cent of the state economy to 6 per cent.
    • A $9.2 billion war chest of surpluses over the next four years on the back of solid collections of payroll tax, land tax and GST.
    • Growth in public sector expenses of 3.2 per cent a year, topping to $23 billion in 2019/20.
    • About $46 billion in infrastructure projects over the next decade.
    The budget was broadly welcomed by interest groups but Opposition Leader Matthew Guy criticised the fact it did not have an overarching population plan to tackle Melbourne's "unsustainable" growth.

    "This is a budget that promises an infrastructure project here, a spending over there ... but there is no plan to manage our state's population and that is what we need," he said.

    Read more: http://www.theage.com.au/victoria/pallas-warns-more-asset-sales-on-the-horizon-to-pay-for-major-projects-20160430-goiurb.html#ixzz47N5PGI42
    Follow us: @theage on Twitter | theageAustralia on Facebook

    • Informative Informative x 1
  2. This will be a very bad thing for Victorian motorists.

    Not only do TAC currently have to pay a dividend to the grubbierment, but should they be privatised then they will also be expected to make a profit for shareholders and there will be no prizes for guessing how that will be achieved.

    Victorian history is littered with the failures of 'privatisation' to achieve anything resembling value for the people of the state, we don't need any more.........are you paying attention, you fcukwit lazy politicans.
    • Agree Agree x 2
  3. Privatisation of the CTP system in NSW hasn't worked out too well for motorcyclists, I see no reason why any attempt to privatise Vic's CTP would produce a different result.
    • Agree Agree x 2
  4. In many ways the TAC is already acting as if it were a private entity. One of the ways it attempts to control it's outgoings is to influence policy and legislation. A change to private equity might change that somewhat. TAC would certainly lose it's 'halo' and become just another utilities gouger in the public mind.
    Can't see the no fault payout principle surviving, and prices would inevitably rise.